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Monday, March 18, 2013

Hats off to Cypriot IT-specialists!

Anyone who has ever worked in a large corporation knows how tedious a process it can be to get internal IT-departments to develop new software. Not so in Cyprus. Within less than 24 hours, so I understand, the IT-departments of Cypriot banks developed and implemented new software which blocked funds in the amounts specified by the Eurogroup's decision. Wow!

This reminds me of Greece where, allegedly, the judicial process can almost be eternal. However, when it came to arresting and judging a journalist for publishing the Lagarde-list, they got that done in a hurry.

This just goes to prove that 'where there is a will, there is a way'.

How about applying the will to things which are more constructive than disowning small depositors and/or jailing journalists?

10 comments:

To develop new software, yes, it is tedious. To deploy it? It depends. A properly networked system, can deploy new software very quickly nowdays(provided they used new software and not capabilities of the already installed).

In general Cypriots are much better organized state than Greece (legacy of the British).

The judicial processes in Greece, are in deed eternal and those of politicians have many opportunities to escape due to immunity. The case of the journalist you mention, isn't a normal judicial process. Ηe was arrested in "autoforo", within 24h from the assumed "violation". It's the same if they catch you while you are stealing from a flat. These cases are always judged quickly. If you are caught beyond 24h from the "act", then your process will go a long way. The abnormal in the journalists' case, was the overzealous district attorney that ordered his arrest for violating the privacy of those in the Lagarde list. Ηe was arrested on 28 October and found innocent on November 1st, in a funny trial with no accuse testimonies.

Sorry to ruin your dream Herr Kastner but they didn't develop or even deployed new software. All serious banking software has automatic facilities to block accounts. You feed the numbers or conditions (in this case probably conditions) and the End of Day just does it automatically. After you block the accounts you do database SELECT & INSERT and lo and behold the money have gone in less than a couple of hours. It is usually done when the courts issue orders to block or confiscate funds and I have done something similar several times in the past. I suspect somebody wrote an imprecise article.

I just heard a cypriot tv discussion, someone (i don't know him) said he spoke with the cypriot finmin and he proposes to take a LOAN from the depositors, on voluntary basis, with on return rights on the natural gas on a 2:1 basis, transforming liability to equity, He claims that they would voluntarity raise not 6, but over 10 bln and would stop the bank run. He claims he spoke with 2 russian and 2 cypriot investors and all agreed.

If this is viable as option, i think it will fail politically. Because Germany wants simply Cyprus wiped out as banking destination. So even if the Cypriots were to find the 6 bln, German would deny the deal.

Others are in favour of giving Russia whatever deal on the gas in exchange of money. Seems that the plan of forceful haircut on deposits, despite revisions, has trouble finding majority, because the cypriot tv is full of analysts saying that the hit in the economy will be so big, that all the provvisions with which the troika program has been drafted, will be thrown out of the window the next day. The troika program is based on a "normality" of the cypriot economy. THe haircut will turn things upside down, Cyprus will be forced to 2nd,3rd troika program (to the big "surprise" of the troikans). Close to 50% of cypriot GDP comes from services related to the banking business (law offices, accounting, insurance, etc) and it would be like suicide. There is doubt that Anastasiades has even his 28 deputees "loyal".

Also, luckily, seems that they don't have their "George Papandreou" running alone the show, but all parties have been thrown in, as well as meetings with the major economic players in Cyprus.

Others say, that the Germans are "experimenting" on Cyprus, in order to be able to apply or threaten with the same measure other "countries in trouble". The ultimate weapon to impose austerity or else, solve the problem of individual banks. That's why Germany was ready to put at stake so much on a small problem.

I don't know enough cypriot politics and faces to know how much is speculation and not, but at least, seems that there are a LOT of people thinking right now, instead of having "mastermind George Papandreou" (Anastasiades) do whatever he thinks.

Anastasiades' own MPs, in an internal reunion, decide to abstain from the vote. The smaller party that supports Anastasiades, will either do the same or vote against. The rest of the opposition is compact and will vote against, as a matter of fact, AKEL is calling the people to protest in front of the parliament.

"Soldiers when in desperate straits lose the sense of fear. If there is no place of refuge, they will stand firm. If they are in hostile country, they will show a stubborn front. If there is no help for it, they will fight hard."

- Share on cypriot banks- Share on natural gas, with rumours for 20% of its management.- Refuelling of russian warships at Mari naval base (it's an empty naval base that Cyprus built while Andreas Papandreou was still alive and made the "common defence area" pact with Cyprus, according to which, greek warships would need to have a base in Cyprus in case Cyprus was attacked).- Refuelling of russian aircrafts at Pafos "Andreas Papandreou" military airport (same as above, the airport was built during Andreas Papandreou late era and is practically empty, since Cyprus has no airforce).- Have the details of russian proprietors of firms installed in Cyprus.

I repeat these are rumours from greek newspaper, not quoting source.

http://www.protothema.gr/economy/article/?aid=265356

Quite a list for 5,8 bln... Russians, if true, are sucking the Cypriots dry. My only doubt is this about the 20% management. For the rest i 'd accept, although it would not be liked by USA and EU and i don't know if Cyprus is ready to do that.